In the intervening period regulatory demands on companies have grown both in the UK and internationally, whilst new exposures caused by developments such as cyber-risk, data protection laws and gender pay gap reporting have added an extra dimension to the type of cover required.
The guide provides practical step-by-step advice on how to assess risk and acquire D&O cover, illustrated by case histories and possible scenarios.
It stresses the need when buying D&O insurance for the risk manager to collaborate with those most likely to be hit by a claim, especially the board. By involving the most senior management in the discussions around risk strategy, risk mapping and risk transfer, risk managers can ensure that managers are aware of their responsibilities and the mechanisms in place to protect them.
"It is very important to understand recent changes in the risk environment, both internally and externally, when assessing D&O risks. The context has changed materially, and continues to change at an escalating pace," said Airmic deputy CEO Julia Graham. "The risk manager faces the challenge of a world of more complex and connected risks."
Paul Moody, CEO, UK Specialties, Marsh, said: "Company executives now face an unprecedented amount of scrutiny into their actions. As boards shape their corporate priorities, risk managers need to ensure that their firms have effective governance in place around their D&O liabilities. A robust international D&O insurance programme can provide the executive protection required, should a claim arise."
Noona Barlow, European Head of Financial Lines, AIG said: "We're really pleased to have been involved in producing this practical guide, an example of great teamwork between insurer, broker and Airmic. We have tried to cover a wide variety of topics, creating an overview that we hope will be of use to a broad audience. In insurance, collaboration between the three key parties - client, broker and carrier - is vital to creating a seamless experience, and we hope this guide will facilitate that collaboration."
The guide, Directors' and officers' liability - understanding risk and buying insurance - was written jointly by AIG, Marsh and Airmic.